Note 4. Property and Equipment December 31, December 31, 2016 2015 Construction in progress $ 449,409 $ 482,284 Land and improvements 8,063,716 5,089,472 Winery buildings and hospitality center 14,458,309 13,756,320 Equipment 10,122,593 9,055,987 33,094,027 28,384,063 Less accumulated depreciation (12,897,082 ) (11,654,901 ) $ 20,196,945 $ 16,729,162 Depreciation expense $ 1,254,455 $ 1,194,191

Required:

a. Explain the difference between Vineyard development costs and Land and improvements.

b. Calculate the percent used up of the Vineyard development costs.

c. Calculate the percent used up of the Property and equipment. What does this imply for future cash flows for Willamette Valley Vineyards?

d. Assume that on January 1, 2017 the company determined that the Vineyard development costs had a fair value of $4,000,000. How would this affect the companys balance sheet and income statement in 2017?